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Muthoot Finance has recorded 2% decline in the
net profit on consolidated basis to Rs 997.03 crore for the quarter ended March
2022 (Q4FY2022) over a corresponding quarter of last year. The company has
improved the loan growth back into double digits in Q4FY2022. The asset quality
of the company has also improved in Q4FY2022.
Income from operations declined 2% to Rs 3041.14
crore in the quarter ended March 2022. Interest expense also fell 2% to Rs 1032.47
crore, while other expenses (including staff cost of Rs 370.99 crore and other
expenses of Rs 250.47 crore) moved up 7% to Rs 621.46 crore. Ensuing Gross
profit declined 7% to Rs 1387.21 crore in Q4FY2022 over Q4FY2021.
Depreciation rose slightly to Rs 20.78 crore in
Q4FY2022 from Rs 20.29 crore in Q4FY2021, while provision and write offs declined
to Rs 14.61 crore in Q4FY2022 from Rs 83.15 crore in Q4FY2021. PBT fell 2% to
Rs 1351.82 crore.
Effective tax rate eased to 25.6% in Q4FY2022
from 26.1% in Q4FY2021. The net profit of the company fell 2% to Rs 997.03 crore
in the quarter ended March 2022.
Business performance
Gross retail Gold loan AUM of the company
increased 10% yoy to Rs 58053 crore at end March 2022.
The net Interest margin (NIM) of the company, on
calculated basis, eased by 176 bps on sequential basis to 12.33% in Q4FY2022.
Gross stage 3 assets of the company dipped to 2.99%
at end March 2022 from 3.82% a quarter ago. ECL Provision as % of Gross Loan
Assets declined to 1.24% at end March 2022 from 1.46% a quarter ago.
CRAR ratio was at comfortable level of 29.97% at
end March 2022.
Branch network of the company increased to 5581 branches
end March 2022. Employee count increased to 26716 at end March 2022 from 26599 a
quarter ago.
Muthoot
Finance (MFIN),
India’s largest gold financing company in terms of loan portfolio, registered
net profit of Rs 3954 crore in
FY22 as against Rs 3722 crore in
FY21, an increase of 6% YoY. The net profit stood at Rs 960 crore in Q4FY22 as against Rs 996 crore in Q4FY21. Loan Assets stood at Rs 58053 crore as compared to Rs 52622 crore last year, registering a
growth of 10% YoY. Gold Loan
Assets stood at Rs 57531 crore
as compared to Rs 51927 crore
last year, registering a growth of 11% YoY.
During Q4FY22 , Loan Assets grew by Rs 3365
crore, 6% QoQ.
Muthoot
Homefin (India) (MHIL), the wholly owned subsidiary, loan portfolio stood at Rs
1470 crore end March 2022 as
against previous year of Rs 1704 crore,
a decrease of 14%. Total revenue
for FY21 and FY22 stood at Rs 245 crore
and Rs 214 crore respectively.
It achieved a Profit after tax of Rs 13
crore and Rs 8 crore in
FY21 and FY22 respectively. Stage III Asset as percentage of Gross Loan Asset
reduced to 2.10 % end March 2022
as compared to 4 % end March 2021.
Belstar
Microfinance (BML),
is a RBI registered micro finance NBFC and a subsidiary Company where Muthoot
Finance holds 60.69% stake,
increased its loan portfolio to Rs 4366
crore as against last year of Rs 3300
crore, a YOY increase of 32%.
During Q4FY22, loan portfolio increased by Rs 530 crore. It achieved a Profit after tax of Rs 47 crore and Rs 45 crore in FY21 and FY22
respectively. Stage III Asset as percentage of Gross Loan Asset stood at 5.73% end March 2022 as compared to 2.37 % end March 2021.
Further
Belstar Microfinance raised equity capital of Rs 275 crore from a new investor
Arum Holdings Limited along with existing investors Muthoot Finance Limited and
Maj Invest Financial Inclusion Fund during Q4FY22. In addition, Muthoot Finance
has acquired an additional 588235 equity shares in Belstar Microfinance Limited
for a consideration aggregating to ? 20 crore. Consequent to the new fund
raise, shareholding of Muthoot Finance declined from 70.01% to 60.69%.
Muthoot
Insurance Brokers (MIBPL), an IRDA registered Direct Broker in insurance products
and a wholly owned subsidiary company generated a total premium collection
amounting to Rs 406 crore and Rs
479 crore in FY21 and FY22
respectively. Total revenue for FY21 and FY22 stood at Rs 47 crore and Rs 45 crore respectively. It achieved a
Profit after tax of Rs 32 crore and
Rs 28 crore in FY21 and FY22
respectively.
Asia
Asset Finance PLC (AAF) is a subsidiary based in Sri Lanka where Muthoot Finance
holds 72.92% stake. Muthoot
Finance has made an additional investment of an amount of LKR 39.69 crore in Asia Asset Finance PLC
by subscribing to 39687516 convertible irredeemable preference shares of the
face value of LKR 10 each during FY2022. Loan portfolio grew to LKR 1735 crore as against LKR 1400 crore last year, an increase of 24% YoY. Total revenue for FY21 and
FY22 stood at LKR 295 crore and
LKR 318 crore respectively. It
achieved a Profit after tax of LKR 5 crore
and LKR 12 crore in FY21
Muthoot Money (MML), became a wholly owned
subsidiary of Muthoot Finance Ltd in October 2018. MML is a RBI registered
Non-Banking Finance Company engaged in extending loans for commercial vehicles
and equipments. Loan portfolio stood at Rs 207 crore end March 2022. Total revenue for FY21 and FY22 stood at
Rs 70 crore and Rs 45 crore respectively. and FY22
respectively.
Book
value of the company stood at
Rs 457.1 per share at end March 2022. Adjusted book value (adjusting for net
stage 3 assets) stood at Rs 431.8 per share at end March 2022.
Commenting
on the results, George Jacob Muthoot,
Chairman stated, “Despite the
ongoing geo-political crisis and covid related base challenges, Muthoot Finance
has delivered a consistent performance in this quarter and was able to achieve
a consolidated AUM of Rs 64494 crore,
registering a growth of 11% YoY. We
achieved landmark level of consolidated profit after tax of Rs 4031 crore for
FY2022. As the economy is gradually recovering, the demand for gold
loans has been steady and we remain optimistic for the coming financial year.
Gold prices have been steadily rising over the last three years and this has
attracted new customers towards the product and has positively helped the
sector. With Indian Households owning the world’s biggest private stock of gold,
and only about ten percent in the organized gold loan market space including
gold loan companies, there is huge untapped opportunity in gold loan sector. We
aim to keep innovating and maintain our leadership in the gold loan sector.”
George Alexander Muthoot, Managing Director said, “Since we are witnessing signs of recovery
in the economy, the RBI rate hike may not dampen overall demand scenario and we
are expecting borrowing cost to go up gradually during the year. Gold loans are
a great option both, in times of rise and drop in economic activities. As the
economy recovers and overall economic demand revives, our focus will be to make
the most of the opportunities and keep innovating further. Gold Loan AUM grew 11% during FY22 and we
remain optimistic about a growth of 12-15% in Gold loan AUM for FY23 as well. The
digital initiatives like
He further added, “The Q4FY22
results highlighted a steady performance in this quarter. We had disbursed
fresh loans to 4.00 lakh new customers amounting to Rs 4664 crore and to 4.89
lakh inactive customers amounting to Rs 4759 crore. Further, Company could
register a 6% increase in profit after tax at Rs 3954 crore for FY2022 and 11%
growth in gold loans at Rs 57531 crore. With respect to our subsidiaries,
following the rise in demand in the economy, the collections from Micro
finance, vehicle finance and home loans have improved. We aim to further
improve our collections in these segments. However, we will continue to adopt a
balanced growth strategy and given the ongoing macro-economic environment we
continue to be cautious on the Micro finance and Vehicle finance business.”
Financial Performance FY2022:
For the year ended March 2022 (FY2022), Muthoot
Finance reported 6% rise in Income from operations at Rs 12184.91 crore. Other
income jumped 47% to Rs 52.55 crore in FY2022. The total income improved 6% to
Rs 12237.46 crore. Interest expense increased 4% to Rs 4255.85 crore, while
other expenses moved up 5% to Rs 2117.90 crore. Ensuing Gross profit rose 8% to
Rs 5863.71 crore. Depreciation increased 4% to Rs 70.00 crore, while provision
and write offs moved up 50% to Rs 383.52 crore. PBT rose 5% to Rs 5410.19 crore.
Effective tax rate stood at 25.5% compared to 25.6%. The minority interest increased
2% to Rs 14.70 crore. The final bottomline of the company inched up 6% to Rs 4016.62
crore in FY2022.
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Muthoot Finance:
Consolidated Results
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Particulars
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2203 (3)
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2103 (3)
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Var %
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2203 (12)
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2103 (12)
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Var %
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Income from operations
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3021.13
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3104.50
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-3
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12184.91
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11534.56
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6
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Other Income
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20.01
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14.48
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38
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52.55
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35.63
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47
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Total Income
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3041.14
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3118.98
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-2
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12237.46
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11570.19
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6
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Interest Expenses
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1032.47
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1051.12
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-2
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4255.85
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4099.93
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4
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Other expenses
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621.46
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579.26
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7
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2117.90
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2016.21
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5
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Gross profit
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1387.21
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1488.60
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-7
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5863.71
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5454.05
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8
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Depreciation
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20.78
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20.29
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2
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70.00
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67.36
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4
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Profit before tax and
Provisions
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1366.43
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1468.31
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-7
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5793.71
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5386.69
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8
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Provisions and write
off
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14.61
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83.15
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-82
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383.52
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255.22
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50
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Profit before tax
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1351.82
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1385.16
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-2
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5410.19
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5131.47
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5
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Provision for tax
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345.60
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361.40
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-4
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1378.87
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1312.61
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5
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PAT
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1006.23
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1023.76
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-2
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4031.32
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3818.86
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6
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Minority Interest
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9.20
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3.79
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143
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14.70
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14.47
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2
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PAT after MI
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997.03
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1019.97
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-2
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4016.62
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3804.39
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6
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EPS*(Rs)
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99.4
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101.7
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100.1
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94.8
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Adj BV (Rs)
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431.8
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383.9
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431.8
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383.9
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* Annualized on
current equity of Rs 401.332 crore. Face
Value: Rs 10, Figures in Rs Crore
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Source: Capitaline
Corporate Database
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